Lotte Department Store has become the first in the industry to surpass 1 trillion won ($700 million) in annual sales to foreign shoppers, a milestone reached as department stores establish themselves as venues where visitors to Korea experience the country's premium lifestyle.
Cumulative sales to foreign customers this year, including outlets and malls, topped 1 trillion won as of the 6th, the company said the same day. It is the first time a major Korean department store operator has crossed the 1 trillion won mark in annual cumulative foreign sales. Lotte had already surpassed its record full-year foreign sales from last year, 734.8 billion won, back in July. Foreign sales jumped 125% in the first half of this year from a year earlier, far outpacing expectations.
By location, Lotte Town Myeongdong accounted for more than half the total at about 520 billion won. Foreign sales at Lotte Town Jamsil doubled from a year earlier, marking steep growth. Customers from the Americas and Europe made up 35% of the Jamsil total, up 15 percentage points from 2019. As more foreign visitors travel outside the capital region, foreign sales at provincial stores also surged, rising 150% at stores in Busan and 100% at the Jeonju and Gwangju outlets.
Luxury goods and K-fashion drove the gains, each more than doubling this year. Sales at food halls and restaurant floors rose 50%. The company attributes the pattern to "dual spending," in which shoppers buy global brands while also sampling fashion and cuisine available only in Korea.
"It is meaningful that we have set a new milestone by becoming the first department store operator to reach 1 trillion won in foreign sales," said Chung Hyun-suk, chief executive of Lotte Department Store. "We will continue to anticipate the needs of global customers and strengthen differentiated shopping experiences and content to grow into a global department store that represents Korea."
Rivals are also approaching the 1 trillion won threshold. Shinsegae Department Store's cumulative foreign sales reached 850 billion won at the end of September, more than double the year-earlier figure. Hyundai Department Store stood at 805 billion won and is widely expected to pass 1 trillion won this year. Foreign sales at The Hyundai Seoul rose 135% this year, and one in four visitors there is a foreign shopper. Lotte and Hyundai include sales from outlets and other formats, while Shinsegae counts department store sales only.
